Jennifer Lang Financial Services, LLC.​Smart Money StrategiesWisdom For the Life You Want

​​However much we research the options available when buying life insurance, and discuss them with friends and family, there are some things we might just never know.Following are suggestions from insiders – those who are involved in life-insurance matters on a daily basis.

Include payment with your application.What would happen if you were to die after applying for a life-insurance policy, but before the application is processed? You wouldn’t have a policy, unless you take one important step: if you include a check for the first payment when you submit an application, your coverage will be retroactively binding to that day.

Don’t name a minor as a beneficiary.One reason we buy life insurance is to provide for our children. But minors can’t receive life-insurance proceeds, at least not directly. If you name a child as a beneficiary, he or she may have a hard time getting the money before turning eighteen. And, at that point, the child receives the money with no controls over how it’s used. A better option may be to create a life-insurance trust that receives the money and specifies its use. For example, the trust can disburse the funds over time on milestones you define, such as when your child turns twenty-one, thirty, etc.

Don’t use group life insurance to satisfy a divorce agreement.If a divorce agreement provides you with alimony or child support, it also likely requires your ex-spouse to have a life insurance policy naming you as a beneficiary. However, if your ex-spouse suggests using a work policy to satisfy this requirement, you may need to ask him or her to reconsider: if your ex-spouse changes jobs, the agreed-upon coverage may be lost.

​Use an insurance professional.Purchasing insurance online is convenient, especially with life insurance. One can always ensure that you have the policy that’s right for you – and learn more from your own personal industry insider here at WFGInsuranceQuotes.com.

​Life insurance typically is used to provide replacement income for those who depend on you – spouses, children, or others. Here are three ways replacement income from your life insurance policy can help your dependents:​Funeral costs and estate taxesWhen you die, you may leave taxes due or other end-of-life costs, such as funeral expenses. For example, the most recent information from the National Funeral Directors Association pegs the national median cost of a funeral with viewing and burial at $7,181 – and that doesn’t include additional costs such as monuments or markers, flowers, or published obituaries. A life-insurance policy can be used to cover these expenses, freeing your loved ones from paying for funeral and final estate costs.

Higher education costsPerhaps you have children who have not yet attended college. Or perhaps your children are already in college or recently graduated, in which case they may have tuition costs or student loans outstanding. In these cases, your life insurance proceeds could be used to finance your children’s college education or to pay off their education-related debts.

Medical expensesThe population is aging: In 2014, the latest year for which data is available, 14.5% of the U.S. population (some 46.2 million Americans) was 65 years of age or older. By 2040, the population of seniors is expected to grow to 21.7% of the population. As we age, we get ill, and many of us will suffer prolonged illnesses prior to death. We may need extended-care facilities, which can be costly. Consider giving your loved ones the gift of not worrying about medical or extended-care bills that may come due after your death by earmarking your life insurance policy to cover such costs.

​No one likes to contemplate death when they’re young and healthy, but this is the best time to plan ahead and ensure your family members are looked after when you die.

​​Many people avoid making decisions about life insurance because no one likes to think about his or her own death – but if you have a spouse or others who rely on your income, it’s important to ensure they’ll be cared for if something happens to you. And that requires purchasing an appropriate amount of life insurance coverage.

When considering how much coverage is necessary, people often react with horror at the numbers, such as $250,000, $500,000, or even $1 million. “Why would I need that much?” they ask. The fact is, you might need even more.

Many people consider life insurance a means of providing a lump sum of money that will be gradually spent down. But imagine if the money could actually work for your survivors, earning them a steady annual return. For example, a 6% return on $1 million is $60,000 a year – enough to provide the basics in many care facilities – and a 6% return on $2 million is $120,000 a year, which is a good annual income for your survivors.

Many think they’re covered by a life insurance policy provided by an employer; this is a common misconception. Companies usually only provide the equivalent of a year’s salary, which is probably not enough. As well, your employer’s life insurance benefits may not be portable should you change jobs; you might need several term life insurance policies, which can be added at different times.

If you are concerned about cost, note that there are different types of life insurance. Term life insurance, for example, is the most affordable. It pays a benefit to the survivors you name, if and when you die within the specified “term” or period of time.

​Life insurance is a straightforward concept: Buy a policy and pay a relatively small premium, and the beneficiary will get a large cash benefit if the insured dies while the policy is in force.

But there are many variations on this basic theme - and just as many misconceptions about how life insurance works. Here are some of the most common myths.

I already have enough life insurance through my job.

Many people believe they have coverage from work. But in many cases, the amount of coverage from a workplace Group Policy is not nearly enough to provide meaningful protection for the employees family.

The reason: Section 7702 of the tax code, which governs employer-paid group life insurance benefits, only allows employers to deduct premiums for a death benefit of $50,000 or less. That's only a fraction of the true need for most working families.

Many Financial experts recommend owning 10 and 12 times ones salary or more - especially if you are relatively young. The reason: if the unthinkable happens, the family will need that life insurance to replace many years of a breadwinners salary.

Furthermore, if you get sick and lose your job, you may lose your life insurance just when you need it most. And you may not be able to qualify for life insurance then.

Owning your own policy ensures that you can select the amount of protection that suits your needs, and that your policy follows you even if you change jobs or leave the workforce. If you have coverage at work, you may want to explore owning additional coverage for yourself and your family.

I'm young and healthy and don't need it.

The best time to buy life insurance is when you are young and in good health. Accident and injury, not illness, are the leading cause of death for Americans under age 44, and the fourth leading cause of death for Americans of all ages, according to the Centers for Disease Control.

These deaths include:

Car accident

Accidental drug overdoses, including prescription drug overdoses

Medical error

Falls

Drowning

Accidental shooting

Electric shock

Fires

Traumatic brain injury

Crime

Any of these events can strike the young and healthy at any time. More than 235,000 Americans died of injuries and accidents in 2016, according to the CDC - 105,296 of them, or 43% were age 45 or younger.

I don't qualify for life insurance.

Medicine has improved a great deal in recent years - and life insurance underwriting has changed with it. You may still be able to qualify even if you have controllable diabetes, cancer (in remission, usually for 5 years or more), or if you smoke or are overweight, have high blood pressure or cholesterol.

Yes, you'll likely have to pay a higher premium, or settle for a lower amount of life insurance.

I can't afford it.

it's more affordable than you think. Some 80% of Americans vastly overestimate the cost of life insurance. According to LIMRA. Millennials overestimate the cost by 213%, andGen Xers by 119%.

The fact is today's life insurance carriers are able to offer meaningful protection for just a few dollars per week and often less than the cost of a single dinner out per month. This is especially true if you buy it while you are still relatively young and healthy.

For some individuals, it could last for a specified period of time, such as 10 or 15 years. This type of policy is referred to as “term” life insurance. So how is it different from whole life insurance?

Life insurance policies that stay in effect for your entire lifetime are called “whole” life insurance policies. As long as you continue paying premiums, you have insurance until you die.

On the other hand, there are “term” life insurance policies. These policies provide coverage for a limited period of time.

If you choose a 15-year term, for example, the insurance company will pay your beneficiary the death benefit if you pass away during the next 15 years. Which type of policy you need depends on your individual circumstances.

Whole life insurance policies are well-suited to individuals who want to provide for a beneficiary if they die, regardless of changing circumstances.​Term life insurance policies are better for individuals whose beneficiaries will not rely on them financially forever.

Let’s say you have coverage primarily for your children, and at some point, you expect your children to be grown and providing for themselves. In this case, you may not need life insurance anymore.

In this situation, a term life insurance policy may be a good choice – because term life insurance policies generally cost less than whole life insurance policies.

The conditions available with term life insurance vary, but generally, longer terms have higher premiums. But there are factors to consider other than cost when choosing between a whole and term policy.

One is reinsurability. If you acquire a terminal illness during the term of a policy, and you still need a policy when the term expires, you may not be able to get one.

WFGInsuranceQuotes.com can help you weigh these issues and decide which policy is best for your situation. Contact us today.

Client Scenario Amanda and her husband are both age 27. She is a college instructor earning $47,000 a year and her husband is working part-time while attending graduate school. The couple depends on both incomes for their recent home purchase and various debts.

Concerns Amanda and her husband have some student loans and small credit card debt, in addition to their mortgage. Right now, their savings are small as they take care of these. She has group life insurance coverage through her employer that is equal to her salary, but is worried it is not enough.

Solution With Term Life and Accelerated Underwriting, Amanda qualifies for instant approval – no exams or tests – and gets her policy in just a few days.

She bought $250,000 in 30-Year Term Life and feels good knowing Lucas could afford to finish his degree and pay for living expenses if something happened to her.

Life coverage will also be there for Amanda now and in the future, even if she changes jobs. She added on the optional return of premium benefit (ROP), which will pay her back up to 100% of premiums paid if she never needs her coverage.

​Here's how we break down her coverage: Amanda’s Base Policy rate is for a, Female, Preferred Non-Tobacco $16.75 Endowment Benefit Rider (ROP) $4.35 for a total of $21.10 a mo.

​Client Scenario Michael, 35, his wife Jennifer, 34, and their two sons live in Bakersfield, California. The couple lives comfortably on their $150,000 household income, which covers the mortgage and allows for a few extras.

​​ConcernsA friend’s recent health scare inspired the couple to take action on their need for life insurance. Michael and Jennifer rely on their dual incomes. They want to make sure their sons, and the life they’ve built, are financially protected if something happens to them.

Solution We put together a Term Life Insurance Policy with Accelerated Underwriting proved to be the answer for their family situation.

Michael bought a $500,000 / 20-year Term Life policy and got Jennifer $500,000 in coverage using anOther Insured Level Term Rider.

The couple also purchased the Children’s Term Rider to give their sons $15,000 in coverage and the option to convert to permanent life insurance down the road.

The couple liked the added protection of living benefits with Critical Illness Benefit Riders. These add-ons pay a $50,000 lump-sum benefit if either suffer a critical illness like cancer, heart attack or stroke.

If something happened to you, could your loved ones make it without you? Would they have enough income to pay the bills? Life insurance can help replace your lost income and provide your loved ones with a solid future. You can also take advantage of great financial benefits like these:

Build cash value (through permanent life insurance policies) that you can access through loans or withdrawals to supplement retirement income, cover emergencies, or help pay for your child's college education.

Contact us today to learn how life insurance can protect you and your family.

If you’re young and healthy. You should strongly consider purchasing life insurance, and here’s why:

People who are young, healthy and have a good family health history are likely to receive some of the lowest rates on life insurance. And it’s best to get it when you’re young because that is when you are most insurable.

Your lifestyle and financial situation will determine what kind of life insurance you need. Do you need Term or Permanent? There is a difference.

Term life insurance provides coverage for a specific period, such as 10 or 20 years – or more. It can be renewed when the term is over, usually at a higher rate. However, it does not build a cash value.

Permanent life insurance offers lifelong financial protection as long as the policy’s premium is paid up until the death of the insured. It also builds cash value that’s funded by a portion of the premiums the policyholder pays. The policyholder can access this cash value, if needed, but any outstanding loans are subtracted from the death benefit when it is paid.

There are several types of permanent life insurance:

Indexed Universal Life Insurance

Whole Life Insurance

Universal Life Insurance

​They differ in whether the premiums are level or variable and how the cash value accumulates.

Most people, when they think of life insurance, might think of two types: Term Life Insurance and Whole Life Insurance.

​There are two types of policies, but it’s more accurate to think of them as temporary or permanent. It’s kind of like renting an apartment vs. buying a home. When you rent, it’s probably going to be temporary, depending on your situation. However when you buy a house, the feeling is more like you’re settling down and you’ll be there for the long-haul. When you rent, you don’t build value. But when you buy, you can build more equity in your home the longer you own it.

Permanent life insurance can build a cash value, something a term policy can’t do.

A term life policy only has monetary value when it pays a death benefit in a covered claim. Temporary and permanent policies also have some types of their own.

For example, term life insurance can include living benefits or critical illness coverage, as well as group term life insurance and key person life insurance, which is sometimes used in businesses. These are all designed to be temporary coverage. Here’s why. The policy might guarantee premiums for 10 years – or as long as 30 years – but after its term has expired, a term policy can become price-prohibitive. For this reason the coverage is, for all practical purposes, considered temporary.

Permanent Life Insurance: Designed to Last a Lifetime

As its name suggests, permanent life insurance is built to last. It’s a common perception that permanent life insurance and whole life insurance are synonymous, but whole life insurance is just one type of permanent life insurance.

At first glance, a permanent life insurance policy can seem more expensive than a term policy, but you’d have to consider the big picture to be fair in comparing the two options.

Over the course of a full lifetime, permanent life insurance can be less costly – in part – because term policies become expensive if you require coverage after the initial term has expired. An investment element also helps to build cash value in a permanent life insurance policy, taking pressure off premiums to provide coverage.

If I’ve left you scratching your head over your options, no worries!

Understanding the benefits of each type is important, and choosing which policy is best for you is a uniquely personal experience. Contact us, and we’ll review your options to find the right strategy for you and your family.

*Referring SafeMoney.com Advisor: Jennifer LangIf I could show you a way to stay in control of your money until you take your last breath, but instead of giving that money to the government, nursing home or hospital, you could keep that ​

money in the family for generations to come, at the very least wouldn’t you want to know how to do that?​Learn how to protect your money from unnecessary risks.